The core engineering divisions, which account for the lion’s share of profits, are looking healthier with underlying margins heading in the right direction.

True, the giant £773million JSD 6000 rig-lifting barge the group was half way through building remains in limbo, but a recovering oil price should at least increase the appetite of potential buyers.

GETTY - STOCK IMAGE

A stable oil price means write downs in the IES business

Unfortunately, the announcement of a wide-ranging Serious Fraud Office investigation in May is drowning out those improvements.

The shares have fallen almost 50 per cent since details emerged, and it has embroiled much of the senior management team, with the CEO and Petrofac’s relationship with Unaoil, a Monaco-based company it hired to provide consultancy services primarily in Kazakhstan between 2002 and 2009.

Even before the investigation was announced, contracts were few and far between, and the overall order book is far smaller now than it was a year ago.

GETTY - STOCK IMAGE

An SFO investigation may put off potential customers

Our concern is that at a time when the oil price tumble has made firms cautious about investing, an SFO investigation will put off potential customers.

Having said that, there have been some encouraging wins, including the $1billion Duqm refinery project in Oman, and a cost-cutting programme is supporting profits.

Despite the dividend cut, the fall in the share price means that shares continue to offer a yield of over 8 per cent.

That might be enough to tempt some investors, but until the SFO investigation is resolved, the stock should come with a health warning.